Seychelles-based cryptocurrency exchange KuCoin has been ordered to halt its operations in Dubai after regulators determined the platform was operating without the required authorization.
The action was announced Thursday by Dubai’s Virtual Assets Regulatory Authority (VARA), which stated that KuCoin does not hold a license to provide virtual asset services in or from the emirate.
Dubai Bars KuCoin From Offering Services To Residents
In its public alert, VARA said that any virtual asset-related activities conducted or promoted by the exchange in Dubai are in violation of the authority’s regulations.
The regulator emphasized that under Dubai Law No. (4) of 2022 and UAE Cabinet Resolution No. 111/2022, all virtual asset service providers must obtain proper licensing to legally operate in the jurisdiction.
According to Dubai’s Virtual Assets Regulatory Authority, KuCoin does not meet those legal requirements and is not authorized to offer any virtual asset services to residents of Dubai.
The regulator also warned that engaging with companies that fail to comply with VARA regulations, associated rulebooks, and broader UAE legislation could expose users to significant financial harm, as well as potential legal consequences tied to regulatory or even criminal violations.
VARA further clarified that any promotion, marketing, or solicitation connected to KuCoin has not been approved by the authority. As a result, the exchange is not permitted to advertise, promote, or offer virtual asset products or services within Dubai or to its residents.
Regulatory Scrutiny Intensifies
The warning from Dubai comes amid broader regulatory scrutiny facing KuCoin in other regions. In Europe, Austria’s financial regulator recently restricted the exchange’s European arm from conducting new business and onboarding additional customers.
That decision was reportedly based on concerns that the platform lacked sufficient compliance staff to meet regulatory standards, raising questions about its operational readiness and supervisory structure in the region.
European authorities have been tightening oversight of digital asset platforms as the European Union rolls out its Markets in Crypto-Assets (MiCA) framework, which is designed to standardize crypto regulation across member states.
Despite the recent setback involving restrictions on new business, KuCoin has also secured regulatory progress in Europe. Earlier this year, Austria’s Financial Market Authority (FMA) granted the exchange a MiCA permit, authorizing it to operate across the European Union under the bloc’s unified digital asset regime.
In a social media post on X (formerly Twitter), market expert Shanaka Anslem weighed in on the legal challenges faced by the cryptocurrency exchange, stating:
If you hold assets on any exchange that lacks explicit licensing in your jurisdiction, the VARA action is your early warning system. The next cease-and-desist might freeze withdrawals before you can act. The era of “move fast and ignore regulators” is over. The only exchanges that survive the next two years are the ones that already have the paperwork.
Featured image from DALL-E, chart from TradingView.com
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
